HP Fined $14 Million For ‘Cartelization’ of Ink Cartridges, Toner, PCs

Key Takeaways:

• HP India and its partners face a total fine of about 1.4 billion rupees (around $14.4 million).
• The alleged scheme involved rigging government bids and coordinating prices.
• The Competition Commission used WhatsApp records as evidence of collusion.
• HP India reportedly aimed to outcompete other OEMs while discouraging resellers from selling cheaper alternatives.
• The CCI ordered HP India to cease anti-competitive practices and enact compliance training programs.

A Major Fine

India’s Competition Commission (CCI) has levied a substantial penalty against HP India and its channel partners, totaling about 1.4 billion rupees (approximately $14.4 million). According to the competition authority, this measure is intended to address alleged bid rigging and price coordination in government contracts.

Collusion Allegations

The CCI’s findings suggest that HP India worked with five resellers to coordinate bids for government PC contracts. The regulator concluded that these efforts sought to “outcompete other OEMs” by discouraging resellers from offering more cost-effective or counterfeit ink and toner products.

Government Contracts at Risk

Investigators say the company and its resellers strategically arranged bids in ways that boosted the chances of an HP-affiliated partner winning. In total, HP India alone was fined 1.3 billion rupees (about $13.1 million), while an additional 119.8 million rupees (about $1.2 million) was imposed for price-fixing on toner, cartridges, and consumables.

WhatsApp Evidence

Crucial among the CCI’s evidence were WhatsApp records. These messages allegedly show HP India and 16 of its Tier-2 reseller partners engaging in “bid rigging, including cover bidding, price fixation, and customer allocation during 2017-2020.” The communications, regulators claim, spotlighted a shared intent to manipulate markets for printing supplies.

Fines for Resellers

Alongside HP’s penalties, 21 HP resellers were fined a combined 35.2 million rupees (about $365,335). The commission states that high prices for printing supplies led some resellers to consider selling cheaper counterfeit items unless HP India supported the collusive arrangement.

HP India’s Response

HP India objected to being painted as the “kingpin” of the operation. According to the order, the company stated it was “commercially forced” to assist Tier-2 resellers in a collective strategy, explaining that abandoning the arrangement could push partners toward unauthorized or counterfeit alternatives.

Regulatory Measures

Concluding its orders, the CCI called on HP India and its partners to “cease and desist from anti-competitive conduct.” The agency also mandated that HP India hold competition compliance training programs within 60 days, reinforcing the importance of lawful business practices and signaling a heightened regulatory focus on fair market operations.